Following China’s ban on all crypto-related activities in September, its neighbors, Thailand have swung in action to make hay while the sun shines.
Thailand sees opportunity
Deserted mining rigs and now “useless computers” abandoned by Chinese miners have created a lucrative market for Thailand’s crypto investors.
One entrepreneur told Al Jazeera, “Chinese miners got rid of their machines, and the price collapsed by 30 percent. Bitcoin is the gold of the digital world. But a mining rig is like gold mining stocks: you’re paid dividends according to the gold price.”
Furthermore, Thailand’s neighboring country, Laos could benefit crypto miners due to its abundant electricity.
While central banks in most countries continue to advise against the adoption of crypto, Thailand’s central bank says it’s not illegal. The country’s fairer regulations have enabled crypto businesses to thrive.
Bitkub Online Co., Thailand’s crypto unicorn exchange, offers individuals a wide range of digital currencies such as; bitcoin and ethereum, The platform also allows users to buy, sell and store their digital assets. The CEO, Jirayut, revealed plans to venture into new markets as it plans to, “to become the Coinbase of Southeast Asia.”
High energy among reasons for ban
Cryptocurrency mining is an energy-intensive industry. Power-gobbling computers are needed to solve difficult mathematical puzzles to mine bitcoin. The high volatility in bitcoin prices— having reached an all-time high of $68k this year has attracted many investors.
Appetite to invest in these risky bets continues to grow amid predictions that bitcoin — the leading cryptocurrency by market capitalization could soon reach an impressive $100k.
As more people get lured into the sector, so is the amount of energy being consumed. Bitcoin mining is a real power guzzler as annually it reportedly consumes 0.5% of all electricity used worldwide.
In addition to the tremendous energy usage, the cryptocurrency sector is associated with other risks such as; ransomware attacks, money laundering, and terrorism finance.
In its bid to meet carbon goals, China has intensified its crackdown on all crypto activities. Before the ban, the country was home to some of the world’s largest bitcoin miners.
Many of these operators have since fled the country to set base in crypto-friendlier environments. Other countries offer cheaper electricity, favorable to crypto mining. Iceland produces 100% renewable energy, which has attracted many crypto miners as they seek to reduce their carbon footprint.
